Mortgage Rates Inch Up

(RTTNews) - Mortgage rates, or interest rates on home loans, inched up slightly from last week, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.12 percent for the week ending December 16, 2021, up from 3.10 percent last week. A year ago at this time, the average rate was 2.67 percent.

The 15-year FRM this week averaged 2.34 percent, down from 2.38 percent last week. A year ago at this time, the 15-year FRM averaged 2.21 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.45 percent, unchanged from last week. It was 2.79 percent a year ago.

"Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance," said Sam Khater, Freddie Mac's Chief Economist. "While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets on the sideline."